New Delhi: Fuel costs are skyrocketing across the country. With the most recent price increase on Wednesday (July 8), petrol is now selling for more than Rs 100 per litre in all metro cities, with Delhi being the most recent to join the list.
Aside from big cities, petrol costs more beyond Rs 100 per litre in many small towns and remote regions. Even diesel, the fuel used by practically all carrying vehicles, has surpassed the Rs 100 threshold in some parts of Rajasthan.
Fuel price changes on a daily basis have begun to eat into the average person’s wallet. The latest price increase has triggered a snowball effect, making basic goods and services more expensive than ever.
Many people who work from home are unaware of the impact of rising fuel expenses on their everyday life. However, it is difficult to overlook inflation caused by rising gasoline prices, especially when basic necessities like as milk, oil, and beans, among others, are costing an arm and a leg, shattering the monthly budgets of ordinary households.
Here are five items that have gotten more expensive as a result of the fuel price increase:
1. The effect on vital commodities
Prices of edible oils such as mustard, peanut, and soyabean, among others, have nearly doubled in several parts of India in recent months. In Delhi, for example, sunflower oil costs have risen by 52% in the last year. In addition, soya and palm oil prices have risen by 36% and 37%, respectively, in the last year. Fuel prices are one of several important variables influencing edible oil prices.
Meanwhile, other commodities such as beans and sugar have recently grown more popular. For example, the price of arthur/tur daal has risen by 25% from Rs 96 per kg in July 2020 to Rs 110 per kg now.
2. Expensive Vegetables, fruits, and other perishable products
The pricing of vegetables, fruits, and other perishable commodities are directly affected by the prices of gasoline and diesel. As a result of increased fuel prices, the transportation expenses of such commodities from farms to a mandi near you are increasing.
Vegetable prices in Pune have risen by 30% in the last three days, with retailers blaming rising gasoline expenses.
3. An increase in interest rates is on the horizon.
Fuel price increases lead to a rise in total inflation rates. If inflation rates exceed a specific threshold, the Reserve Bank of India intervenes. In such a case, the RBI may contemplate raising interest rates by upsetting the current status quo. An increase in interest rates will have a detrimental impact on everyone who is planning to take out a loan.
4. Delivery services are feeling the heat.
The fuel price increase is projected to have an impact on shipping companies, who are expected to pass on the expenses to other businesses and individuals. If the situation does not improve in the following months, the cost of e-commerce delivery services or food delivery services may rise.
5. Imports will become more expensive
In recent months, freight prices have been thrown to the wind. Shipping costs for imported goods have also risen in recent months as a result of rising fuel prices.